Life is filled with amazing firsts; let’s say for example, your first baby steps, your first day at school, your first job, your first love. All this firsts are memorable and very essential part of your life. In similar manner buying your first home is also one of your special first moments and you want it to be perfect and memorable. Whether you are buying your first home for leaving your parents’ house for first time or you are buying your first home after renting a home for years or buying your first home with your partner or spouse, buying your first home is a big step. You need to make lots of preparations when you are standing in this phase of your life. How do you know whether you are ready for buying your first home and when you know what things are to be taken into consideration while buying your first home? Here are some of the questions you should probably ask yourself before going into the decision of buying your first home.

Can I afford it?

Buying your first home will have a great impact on your finances, thus don’t rush into the decision and make sure you can afford it. If you are having a crashing financial condition then rushing into the decision of buying your first home can be really too much for you and you will have to resell your first home without even getting complete ownership which could be really sad. Thus make your purchase when you are ready and you can afford it. Housing has become really affordable and with low interest rate policies and incentives like tax credit, it has become easier to buy your first home. But purchasing any property involves plenty of other costs like buying new furniture and moving expenses so think whether you have enough cash or not to bear these expenses. Make a budget for monthly payment of mortgage and other cost such as maintenance fees or association fees if you are buying a condo.

Am I mortgaging worthy?

Let’s think you have enough cash but what about credit? Credit is also very essential part for buying your first home. It is not at all a secret that getting mortgage is not as easy as it used to be in earlier days. Lender does see your income, assets, liabilities and then give you mortgage as they want to make sure they don’t exceed debt to income ratio.

Do I plan to live here at least 5 years?

Many of the personal finance experts says that unless and until you plan to live for 5 years in the same house you cannot get enough resale value of the home. Thus if you are going to move in couple of years then it’s better to rent a home and not to buy one. Buying your first home will be worth only when you want to live in there for more years.

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